A boutique has beginning inventory of Rs. 95,000 and made purchases of Rs. 20,200 in the year. At the end of year, the ending inventory was of Rs. 15000. Sales made through out the year were of Rs. 130,700. a. Calculate the Cost of Goods Sold for this boutique b. Calculate the Gross Profit. c. Explain briefly why this boutique uses periodic inventory system.
A boutique has beginning inventory of Rs. 95,000 and made purchases of Rs. 20,200 in the year. At the end of year, the ending inventory was of Rs. 15000. Sales made through out the year were of Rs. 130,700. a. Calculate the Cost of Goods Sold for this boutique b. Calculate the Gross Profit. c. Explain briefly why this boutique uses periodic inventory system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A boutique has beginning inventory of Rs. 95,000 and made purchases of Rs. 20,200 in the year. At the end of year, the ending inventory was of Rs. 15000. Sales made through out the year were of Rs. 130,700.
a. Calculate the Cost of Goods Sold for this boutique
b. Calculate the Gross Profit.
c. Explain briefly why this boutique uses periodic inventory system.
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